Using software watermarking to discourage piracy

Software piracy and copyright infringement are rapidly growing. Historically, the spread of pirated software required the transfer of a physical copy (i.e. a disk), limiting the rate of illegal software distribution. However, recent increases in network transfer rates and ease of access have eliminated the need for physical media based piracy. To compound the problem, software is being legally distributed in platform independent formats, such as Java bytecode and Microsoft's Intermediate Language (MSIL). These formats closely resemble source code, which can easily be reverse engineered and manipulated. Thus it is much easier for software pirates to bypass license checks. In addition, unscrupulous programmers can steal algorithmic secrets, which decreases their own production time and allows them to gain an edge on the competition.